©2012, College for Financial Planning, all rights reserved. Welcome

Expectations of Students Commitment of time and energy Read the assignments prior to class This course will help you: o grow your business o be successful on the College’s end-of- course examination 1-2

Housekeeping Items 1. Professor contact information Lobby & Welcome 2. Tutorial in Lobby 3. Status changes 4. Text chat 5. Files for students 6. Recordings 7. Access Poll Layout 1-3     

©2012, College for Financial Planning, all rights reserved. Module 1 The Financial Planning Process Foundations in Financial Planning SM Professional Education Program

Learning Objectives 1-1: Describe personal financial planning or an aspect of it. 1-2: Define a personal financial goal to make it specific. 1-3: Identify steps in the personal financial planning process. 1-4: Identify the information required for analysis, creation, and implementation of personal financial planning recommendations. 1-5: Identify an ethical duty or principle of conduct of the financial planning professional. 1-5

Play Video LOs as Your GPS 5:00 minutes Play video from Video Layout Video 1-6 Text chat or other questions

Questions To Get Us Warmed Up 1-7

Financial Goals Should be specific in terms of: Purpose Amount Time Frame 1-8

Six Steps in the Financial Planning Process 1. Establishing and defining the relationship with the client 2. Gathering client data, including goals 3. Analyzing and evaluating the client’s financial status 4. Developing and presenting financial planning recommendations and/or alternatives 5. Implementing the financial planning recommendations 6. Monitoring the financial planning recommendations 1-9

Financial Planning 1-10 Retirement Cash Management EstateInsurance Investments Tax

Knowledge Required for Analysis & Plan Creation 1-11 TopicModule(s) Cash management and the use of debt2 Investment strategies and products4 and 5 Tax implications of financial decisions6 Retirement planning issues7 Management of personal risks and insurance8 and 9 Estate planning issues10

Ethical & Regulatory Issues CFP Board’s Seven Principles Rules of Conduct Disciplinary Procedures Regulatory issues 1-12

CFP Board’s Seven Principles 1. Integrity 2. Objectivity 3. Competence 4. Fairness 5. Confidentiality 6. Professionalism 7. Diligence 1-13

Rules of Conduct Revised in 2008 from ‘duties owed’ to Rules of Conduct Defining the Relationship with the Prospective Client or Client Information Disclosed to Prospective Clients and Clients Prospective Client and Client Information and Property Obligations to Prospective Clients and Clients Obligations to Employers Obligations to CFP Board 1-14

Disciplinary Procedures CFP Board disciplinary procedures seek to provide a fair and reasonable process for a CFP® professional when allegations of Code of Ethics violations and/or Practice Standards non-compliance occur. Request for Investigation Investigation Hearing Panel Disciplinary and Ethics Commission Appeals Committee 1-15

Forms of Discipline If grounds for discipline are established, the Disciplinary and Ethics Commission of the CFP Board may impose any of the forms of discipline below. 1. a private written censure 2. a public letter of admonition 3. suspension of the right to use the CFP ® marks for a specified period of time, not to exceed five years 4. permanent revocation of the right to use the CFP ® marks. Note: All disciplinary actions, except private written censure, may be publicly disseminated. 1-16

Regulatory Issues Regulations affecting marketers of insurance products o generally at the state level Securities & Exchange Commission (SEC) registration— o federal regulation—Investment Advisers Act of 1940 o regulates those who offer investment advice o Registered Investment Adviser (RIA) FINRA regulates and administers testing for those involved in the sales of securities 1-17

Question 1 The steps identified in the financial planning process are most closely related to which one of the following CFP Board processes? a.Disciplinary Procedures b.Code of Ethics c.Practice Standards d.Rules of Conduct 1-18

Question 2 Which one of the following would be considered a valid and well-stated personal financial goal? a.Save $1 million and retire early to a cabin up in the mountains. b.Accumulate $20,000 in five years for down payment on a house. c.Buy a new car sometime within the next two years. d.Borrow money from the 401(k) at work to buy investment property. 1-19

Question 3 Which one of the following would not be considered quantitative data? a.health status b.education needs c.general family profile d.copies of important documents 1-20

Question 4 Which one of the following is a principle in the CFP Board Code of Ethics? a.trustworthiness b.loyalty c.honesty d.competency 1-21

Question 5 Which of the following would be the type of documents one would gather from a client in the financial planning process? I.wills and trusts II.product warranties III.travel documents IV.insurance contracts a.I and II only b.I and IV only c.II and III only d.III and IV only 1-22

©2012, College for Financial Planning, all rights reserved. Module 1 End of Slides Foundations in Financial Planning SM Professional Education Program